The firm said it had begun a 90-day consultation with staff at its Europarc plant but stressed that, unless a solution was found to end falling sales, production at the site will be stopped.
Kerry blamed increased competition in the market, which has lead to lower factory throughput and reduced sales across most of the business’ major accounts.
Frank Hayes, director of corporate affairs at Kerry Group, told FoodManufacture.co.uk: “We have commissioned a review of the frozen ready meals business. We have made every effort to reduce the cost base and add additional business but regrettably we have not been able to restore profitability to the plant.
“Our plan is to conduct a review of the site. If we cannot identify measures to secure production we will have no option but to end production.”
Redundancy options
Production at the site will be transferred to Kerry’s factory in Carrick Macross, County Monaghan, according to Hayes. But he said it was too early to say what redundancy options would be available to the affected staff.
Kerry also confirmed that it would look at other “potential projects” for the Grimsby site in the event that its ready meals business was transferred to Ireland.
The site was formerly owned by UK-based ready meals firm Headland Foods, which was acquired by Kerry Foods in December 2010.
Following the deal, in April 2011 Kerry was also forced to close Headlands’ plant in Flint, North Wales. However, consultation for the closure of the site was already in progress at the time Kerry acquired the firm.
None of the unions were available for comment at the time of publication.